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Purchasing life insurance at a young age benefits you and your family. Therefore, it is essential to instill this idea in your children as young as possible.
Most young adults still do not realize how significant life insurance benefits are and how much it can cost you if you do not have an insurance plan. If you have recently understood why you need life insurance, it can be crucial to teach your children about insurance as young as possible. In most cases, this will not be something taught in their schooling. Along with understanding the differences between wills and trusts.
However, educating your children on the importance of life insurance and how it can benefit them and their loved ones puts them on a path to success. Check out these four different tactics to educate your children on the importance of life insurance benefits and finances as a whole.
4 Simple Ways to Introduce Life Insurance Benefits to Your Children
Create an Engaging Activity
A creative and easy way to start teaching your children about insurance is to incorporate it into an activity. The activity can be a way for them to have hands-on experience before they are old enough to have their own bills and life insurance policies to pay for, which will prepare them for when the time comes. If your child is in high school, create a Google Slides presentation or PowerPoint highlighting the benefits and reasons to apply for life insurance. Cover the application process, costs, and the types of insurance. Then, after they understand the basics of insurance, develop an activity to help them grasp the concepts.
For example, your children can use Canva or any design software to create a timeline of their lives. The main focus of this timeline will be significant events that will result in the need for new insurance policies — purchasing a new car, buying a home, getting married, etc.
Provide them with the opportunity to explain the event, why they need insurance for it, and define the type of policy they chose. Teaching them these values allows them to see into the future as to what kind of policies they may need to purchase.
Give Them Real-World Examples
The activity above is the perfect way to get the ball rolling with insurance education, but it can also be helpful to give real-life examples. For example, if your child is taking their driver’s test and preparing to go on the road for the first time, it is a good idea to show them the importance of car insurance. Although they may not be paying for their car insurance by themselves quite yet, they probably will eventually. Showing them what kind of coverage they need and how much it costs will hopefully give them the incentive to put money away for the future when they do need to pay for their insurance.
Car accidents can be expensive, especially when you are liable. Show your soon-to-be-driver infographics on how much car repairs, car accident lawyer fees, and liability insurance costs. Give them a comparison between the prices of having minimal insurance and having credible coverage. The comparison will give them perspective into how expensive cars can be. It doesn’t matter if they are driving a Toyota Camry or a Range Rover — the most suitable insurance is crucial. Giving them this real-world example while they are starting to drive will allow them to put themselves into that position to understand how expensive driving can become.
Use Games in the App Store
It’s the digital age, and children are receiving their own technology at younger and younger generations. If your child is old enough to work the app store, they are probably old enough to play a game to learn about finances and insurance. However, most of the time, children in preschool have extremely short attention spans and cannot sit still for long periods for an entire conversation. Allowing them to play an educational game, such as World of Cents, will give you the peace of mind that they are learning while playing video games.
Provide Them With an Allowance
Even if it’s not much money, giving your child money of their own to spend will show them the value it truly has. Depending on what age you decide to start your child’s allowance, you can give them a lesson on savings and what they will need to spend their money on in the future.
Either digitally or with pen and paper, log your child’s spending and savings each day or week. Offering them an allowance is a simple way to introduce them to saving money. Then, as they grow up, you can teach them to the idea of splitting up your earnings to spend money on bills and how to create a budget.
There is an infinite number of benefits to showing your child reasons to save money and the life insurance benefits they can receive at a young age. Fabric is one way to find a suitable and affordable life insurance plan for you and your family, but it can also assist you in organizing your finances. Receive your life insurance quote in as little as 10 minutes so you can get back to spending time with what matters most — your family.
